Date: 4/28/2021
I wanted to comment on a Reminder article recently following [state] Sen. Eric Lesser’s update to the East Longmeadow Town Council on the status of the area’s “Crumbling Foundation” crisis. I’m not sure of the source of Sen. Lesser’s information but he stated in effect homeowners’ insurance plans only cover a “full collapse,” so it cannot be used unless the house “falls in on itself.”
I suggest his statement is not only incorrect but it discourages impacted homeowners from filing claims which might result in the recovery of most of the expenses needed to restore their property. The Reminder may wish to question the senator and share more accurate information with their readers.
While homeowners’ policies may not cover the defective foundation, these same policies do appear to extend coverage to the “ensuing” damage most homeowners have experienced; like doors and windows that do not open or close properly, cracked walls, bulging floors, etc. Significant damage “resulting from” the shifting of the home’s defective foundation. The cost to repair this damage should be a covered expense.
If a “defective” water pipe in your home bursts and causes extensive damage, the defective pipe is not covered but the resulting damage would be. If a “defective” part in an appliance results in smoke damage thoughout your home, the “defective” part is not covered but the resulting smoke damage is. By association, if a “defective” material in your concrete foundation results in damage to the rest of the structure, the “defective” concrete would not be covered but the resulting damage would be.
In addition, the “Conditions” section of every home insurance policy outlines the “Duties” homeowners have once they discover this damage. Homeowners are required to “protect their property from further damage” and “make reasonable repairs” to protect the property from further damage. These costs are generally considered a covered expense.
The only way to protect the home from further damage is to lift the structure to enable the replacement of the defective concrete. Although the work necessary to replace the foundation is expensive ($200,000-plus per home), the majority of that expense should be covered. That is the information [state] Sen. Lesser and others should be sharing with homeowners, encouraging them to file claims correctly not discouraging them by saying there is no coverage.
This is information which should be shared with the currently impacted homeowners as well as the thousands of residents who in the future may discover they also have the problem.
Frank Lombard
A Massachuestts Licensed Property Insurance Advisor
